SA Premier picks GST fight with WA

South Australian Premier Jay Weatherill has picked a fight with Western Australia's Premier over GST distribution.

Mr Weatherill has accused Colin Barnett of hypocrisy, over claims a deal has been struck which could strip South Australia of GST revenue of hundreds of millions of dollars.

He says Mr Barnett wants to take an axe to South Australia's GST funding share, more than $4 billion this financial year.

The WA Premier told State Parliament this week that he, along with other Liberal states of Victoria, New South Wales and Queensland, had reached "broad, in-principle agreement that the GST should progressively change ... so that most of the money is allocated on a per-capita basis".

"He is an absolute hypocrite, his state was a net receiver of income from the Commonwealth for most of its existence now he's hit the jackpot recently with the resources boom and now he doesn't want to share any of it," Mr Weatherill said.

Western Australia has been vocal in its demands for a bigger slice of the GST pie, saying its riches are diverted to poorer states, leaving it $2 billion worse off.

Devastating

Mr Weatherill said changing the way GST was calculated would have a devastating effect on South Australia.

Nothing can change in respect of the GST unless all the states agree and that means the more vulnerable states are protected

Tony Abbott

He demanded Opposition Leader Tony Abbott rule it out, if he wins the federal poll in September.

"Do you seriously think that Tony Abbott, who said that he agrees with this, all of the coalition states are on board, that they're not going to ram this through COAG? They have the numbers," the SA leader said.

Mr Abbott said more vulnerable states were protected.

"The goods and services tax, while collected an administered by the Commonwealth, it is a state tax. Nothing can change in respect of the GST unless all the states agree and that means the more vulnerable states are protected," he said.

A staff member for Mr Barnett pointed to last year's GST review, which showed the four Liberal states in agreement about the need for reform.